The S&P/TSX Composite Gains Slightly As Oil Prices Rise

The gains in the energy and mining sectors pushed Canada’s major stock indices into slightly positive territory on Tuesday, outweighing the negative impact of Scotiabank’s weaker-than-expected third-quarter results.

The S&P/TSX Composite Index rose 10.43 points to 19,985.35. Shortly after the opening, TSX surged, partly due to energy stocks benefiting from Tuesday’s surge in oil prices.

US benchmark West Texas Intermediate traded at $93.60 on Tuesday, up more than 3.5%. This shows that despite the WTI pullback, concerns about global energy supply won’t go away anytime soon. month from spring high.

Read more: Suncor reports $2.95 billion in revenue as oil prices surge.

“There was a bit of a tug-of-war over energy,” said Philip Petrusson, chief investment strategist at IG Wealth Management.

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“Some investors are saying, ‘How far will[oil prices]go?’ I think the longer term outlook for oil is higher and the market has reached that conclusion. ”

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Global News Morning Market and Business Report – August 23, 2022

Global News Morning Market and Business Report – August 23, 2022

The S&P/TSX Energy Index rose 3.02% for the day, while the Materials Index, which consists of Canadian mining and metals stocks, rose 2.39%.

But the S&P/TSX composite as a whole lost much of its early-morning gains throughout the day, with Scotiabank’s performance losing 5.25% of its share price in its Q3 earnings report on Tuesday. .

Scotiabank reported net income of $2.59 billion for the quarter ended July 31, up from $2.54 billion in the same period last year, but adjusted earnings of $2.10 per diluted share. fell short of analyst expectations of $2.11 per share.

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Revenues in the bank’s Global Wealth Management and Global Banking & Markets divisions declined 14% and 26%, respectively.

“(Scotiabank) is driving the market down almost on its own,” Peterson said. “And we are pulling some of the other banks down out of concern that some of the weaknesses we see in Scotiabank could emerge from other banks as well.”

Read more: Scotiabank reports third-quarter profit of $2.59 billion, up from $2.54 billion in the same quarter last year.

In New York, the market was broadly flat on Tuesday after the previous day’s sharp drop on the back of ongoing inflation concerns.

The Dow Jones Industrial Average fell 154.02 points to close at 32,909.59 on Tuesday. The S&P 500 Index closed 9.26 points lower at 4,128.73 and the Nasdaq Composite Index closed 0.27 points lower at 12,381.30.

Petursson called Tuesday a “hopeful day” for Wall Street, adding that investors appear to be in a pattern waiting for the Federal Reserve Board meeting in Jackson Hole, Wio, on Friday.

All eyes will be on that meeting to see if Fed Chairman Jerome Powell makes a comment that would indicate what the US central bank plans to do to deal with stubbornly high inflation well above target. He added that it is leaking.

“I think the market remains hopeful that the Fed is nearing the end of its rate-hiking cycle. where we are,” said Petursson.

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He accepts that the economy is entering a stage of weakness among investors, but added that the market will remain volatile until the extent of weakness becomes more certain.

“The question now is, ‘Is this just a mild recession, or is it a soft landing, or is it something deeper than that?'” said Petulson. “My view is that the Fed could be approaching a soft landing, or a very mild recession, but we need economic data to keep confirming that.”

The Canadian dollar traded at 77.09 cents compared to 76.72 cents on Monday.

Crude oil contracts rose $3.38 to $93.74 per barrel in October, while September natural gas contracts fell 49 cents to $9.19 per mmBTU.

The December gold contract rose $12.80 to $1,761.20 an ounce and the September copper contract rose 4 cents to $3.70 a pound.

© 2022 Canadian Press

The S&P/TSX Composite Gains Slightly As Oil Prices Rise

Source link The S&P/TSX Composite Gains Slightly As Oil Prices Rise

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